ESMA flashes red

The EU securities markets regulator updates its risk dashboard document. The colour in vogue this spring will not surprise you.

Red is for
“very high risk”, in the colour-code language of the European Securities and
Markets Authority, ESMA. In its brief risk
update of 2 April – in the midst of global coronavirus spread – the red is
applied to ESMA’s view on securities markets as well as infrastructures and
services, and asset management. The consumer segment gets away with an orange
code for “high risk”, without the “very”.

In terms of
risk categories, liquidity and market risk score red, while risks of contagion,
credit and operations stay at orange but with an outlook for worsening.